The Local Government and Social Care Ombudsman has now ordered the council to apologise and pay her £8,000 in compensation.
Croydon Council says it is reviewing its housing services and strengthening staff training and procedures after the watchdog criticised it for mismanaging the individual’s homelessness application.
The resident, referred to as Ms X, was placed in ‘hostel-style’ interim accommodation in September 2022 after being referred to the council by a domestic abuse service.
Medical professionals later raised concerns that the property was worsening her mental health.
This was due to a lack of space and private amenities at the property.
She also cited regular antisocial behaviour from other residents, which professionals said they had witnessed when visiting Ms X.
Despite repeatedly contacting the council to raise concerns and request alternative accommodation, her warnings went unanswered and no action was taken.
By August 2023, her advice worker and domestic abuse support worker told Croydon the property was unsuitable and revealed that Ms X had no housing officer and no clear information about her next steps.
In December 2023, the council accepted its housing duty to Ms X, but she was not informed of this until February 2024.
Following months of unanswered emails from Croydon, medical practitioners again contacted the council, stressing the negative impact the property was having on Ms X’s wellbeing and recovery.
Professionals reported that other residents disturbed Ms X at all hours, exposed her to substances she was trying to avoid, and that her post was being stolen.
They added that the unsafe environment had directly contributed to Ms X experiencing several mental health crises.
In August 2024, the council acknowledged Ms X’s complaints, saying it understood the need for her to move but that limited properties were available at the time.
Upon request, the council launched a suitability review in October 2024, which confirmed the property was not appropriate on medical grounds.
During this period, the council told Ms X she owed around £25,000 in rent arrears despite her never having been properly signed up to the tenancy.
She said the council told her she had to reduce the debt before she could be moved, forcing her to take out loans and borrow money.
She paid about £700 towards the debt before being admitted to hospital, which she said was brought on by the stress.
These payments were made before the council eventually acknowledged the arrears should be written off and that her housing benefit would be backdated.
The council said it would not refund any money she had already paid and moved her into new self-contained accommodation on November 28, 2024.
The Ombudsman identified multiple faults in Croydon’s handling of the case, including significant delays, failure to document and notify decisions, and poor communication.
It concluded the council’s actions had caused Ms X “avoidable distress, frustration and uncertainty”.
Despite this, the Ombudsman praised the council’s decision to backdate Ms X’s application registration to September 2022 and write off the significant arrears she had unknowingly accrued at the property as a partial remedy.
It recommended that Croydon provide a written apology and pay a total of £8,000 in recognition of the harm caused.
Croydon Council said it accepted the Ombudsman’s findings in full.
A council spokesperson said: “We accept the findings of the Ombudsman’s enquiry in full and sincerely apologise that our resident was placed in unsuitable accommodation for an extended period between 2022 and 2024.
“We recognise the national housing crisis has created unprecedented pressures, with homelessness rising sharply whilst suitable temporary accommodation remains in critically short supply. However, we acknowledge that we should have provided a better service in this case.
“In response, we are undertaking a comprehensive review of our housing services and have fully implemented the Ombudsman’s recommendations. This includes enhanced staff training, strengthened procedures, and targeted action to address the backlogs that contributed to the resident remaining in unsuitable accommodation for an extended period.
“The council continues to prioritise homelessness prevention and works proactively with applicants to secure accommodation, primarily within the private rented sector, so homelessness can be avoided wherever possible.”
